There is another way to look at this, although described as an "orbit" so most people imagine a 360 turn at low level, my view is that if asked to do so and only if 1,000 AGL or above, I break off in the direction requested to fly a short crosswind leg, then turn downwind to get a view of the faster traffic that's passing me (and to leave enough room before I turn "base" and join finals again behind him).
It's nothing complicated, just a "mini" circuit. If the manoeuvre was required for spacing for traffic ahead, then a 360 orbit at or above 1,000 feet AGL is no problem. I don't change the config of the a/c at all, just apply enough power to stop the a/c descending and go all the way round.
Below 1,000 feet, follow a standard missed approach and fly accordingly telling the tower that I'm unable to orbit.